Posts Tagged ‘Richard Bernstein’

Federal Involvement: Are Good Intentions Good Enough?

A few short lines about the federal government’s involvement in financial situations that perhaps are best left to the private sector. Recent events, such as the Bernie Madoff ponzie scheme, do support the notion that regulation has its role, especially to put limits on those who might choose to commit fraud.

What regulation and limits are placed on decisions made by our elected representatives who also commit fraud? It seems some of this fraud results in the passing of money into the politician’s pocket, and to a large part into influence and what we call the “buying of votes”.

The scheme Richard Bernstein describes in Duped America that formed the basis for the mortgage crisis reads very much like graft, corruption and influence peddling.

The scheme Sterling Edmunds describes in The Federal Octopus, though from the early 1900’s rather than the late 1900’s, reads much the same.

Good intentions are not good enough. The rule of unintended consequences so frequently seems to be overlooked. The ability to deliver meaningful results goes way beyond the desire to do good. And, so often, the desire to do good is usurped by those who seek influence, power and control.

Bernstein suggests intentional deceit – as in the “duping” of America. Edmunds suggests intentional violation of Constitutional limits.

Below are two short stories about the federal government getting involved with your money.